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Updated with company comments:Dropbox has made its first acquisition, snapping up collaboration start-up Cove as well as its founders, who formerly were executives at Facebook.

Financial terms of the deal were not disclosed.

Cove's team--Aditya Agarwal, Ruchi Sanghvi, Akhil Wable and Joshua Jenkins--are joining Dropbox.The founders of Cove, Agarwal, Sanghvi and Wable, formerly were Facebook executives. Agarwal, who becomes Dropbox's head of engineering, was director of engineering at Facebook and oversaw the engineering team as well as product design and architecture for products including Search, News Feed, Photos and Profile. Sanghvi, who will report to Dropbox CEO Houston in her new role, was the first female engineer at Facebook and worked on products including News Feed and led product management for products including Facebook Platform and Facebook Connect.

Dropbox CEO Drew Houston and his team have known Aditya and Sanghvi for some time since they were at Facebook; Aditya was actually a formal advisor to Dropbox. "We’ve been long-time fans of Ruchi and Aditya's work," Houston said in an interview. "Even going back to Facebook, they've built products that hundreds of millions of people use everyday. There haven't been many people who have done that. In addition we've known each other as friends for a long time."

After working at Facebook for several years and leaving in 2010, Aditya and Agarwal came up with the idea for Cove, which provides online collaboration tools for groups, in March 2011 then started the company last May. Despite their interest in starting their own company they decided to go with Dropbox after being approached by the company. Cove was impressed by the Dropbox team and the product which has similar ideas around collaboration and sharing, Sanghvi said. "We weren’t really looking for an acquisition," Sanghvi said. "We truly believe this is the tech company you want to be at now. It has the potential to be the next big tech company. Given that opportunity comes so few and far between, this opportunity is really rare and extremely unique."

Cove, which was a stealth company, was developing collaboration tools for groups. Dropbox meanwhile isn't talking specifically about how it would develop related collaboration tools. However, the company recently released new features for photos, including an automatic photo upload for its Android app and new desktop features that also automatically upload photos from cameras to Dropbox. This is likely the first is a number of new products and features coming from Dropbox. If the company can expand to specific features for photos, more of which are likely, there are other possibilities for the many other types of files that users add to Dropbox. "Some people think of us as just an app you put on your computer," Houston said. "Our ambitions are much broader than that."

As far as deal size, this doesn't appear to make a dent in Dropbox's finances. The company raised $250 million last year and has plenty of cash in the bank to do more acquisitions.